Unfinished basements hold so much potential. They can be transformed into so many different functional spaces with time, money, and hard work. The benefits of a basement that is completed are immense, but there are some possible downsides. So, is finishing your basement worth it? Let’s discuss the various pros and cons of taking on this project.
The Advantages of having a Basement that is Finished
Increase the Value of Your Home
Homes for sale with completed basements typically go for a higher asking price than those with unfinished. They’re very appealing to buyers, as they’ll get to enjoy the extra storage or living space. They may even decide to rent out the basement to tenants to create a revenue stream.
Create a Convenient Extra Space
If you don’t plan on selling your home anytime soon, you can enjoy all the benefits of the finished basement yourself! As mentioned above, finished basements offer so much extra space that you can customize to suit your needs. For example, the area can become a suite for an elderly family member, an entertainment space for when you have friends over, and so much more. The possibilities are endless.
The Disadvantages of having a Basement that is Finished
You May Not Recoup 100% of Your Investment
The additional living space may increase the value of your home, but is finishing your basement a good investment? There isn’t a yes or no answer. There are so many factors that go into determining your home’s value and asking price, including crime rates, location, and the state of the economy.
You can most certainly profit from finishing your basement and selling your home, but there’s always a chance that you might not recoup 100% of your investment. You can avoid this outcome by waiting until market conditions improve to sell your home. We recommend consulting with a real estate agent to time your sale correctly.
The Project Requires Considerable Effort
The process of finishing your basement is quite different from a DIY home improvement project that you can accomplish over a weekend. Depending on the state of your basement, you’ll need to be prepared to apply for a permit, install insulation, frame walls, install utilities, mount drywall, and much more. If you don’t have the proper tools, materials, and expertise, you’ll likely need to ask for help or hire someone else to take on the task.
Should you Finish your Basement?
There is no clear right or wrong answer to whether or not you should finish your basement. If you could really use the extra living or storage space, finishing your basement could be worth the time, money, and effort. It’s also a great way to distinguish your house in a real estate market that is cluttered with too many homes for sale.
If you can do without the extra space and are worried about not making your investment back, you can pass on finishing your basement for now. You can always change your mind in the future if your financial situation changes. You can still increase your home’s value through other projects that require fewer resources.
The decision to finish your basement is a big one, especially if you intend on putting your house up for sale in the near future. Before you proceed with the project, consider speaking with a REALTOR®.
They can offer information regarding the local real estate market, the popularity of finished basements, your home’s value, and much more. If you decide to finish your basement, they’ll also be more equipped than anyone else to showcase it to potential buyers.
Contact one of our Fully-licensed REALTORS® today!
Looking for an experienced REALTOR® that specializes in real estate across Southern Georgian Bay? At Royal LePage Locations North we are focused on helping you unlock your future.